LNG 0.00% 4.3¢ liquefied natural gas limited

Greg being interviewed at Gastech sounding very positive, lets...

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    Greg being interviewed at Gastech sounding very positive, lets see what he brings home

    https://www.oilandgas360.com/vitol-cheniere-pact-shows-long-term-lng-deals-arent-dead/


    September 20, 2018

    Developers of multibillion-dollar liquefied natural gas export terminals from the U.S. to Australia can breathe a sigh of relief: A supply boom hasn’t killed the long-term contracts that underpin the projects.
    Cheniere Energy Inc., America’s first and biggest shipper of shale gas, struck a 15-year agreement to sell the fuel to commodities trader Vitol Group, according to a statement Monday. The pact is Cheniere’s fifth this year. Venture Global LNG Inc., which is developing a terminal in Louisiana, has finalized four such contracts over that period.

    The Cheniere and Venture Global deals signal better odds for more than a dozen North American gas export proposals vying for similar commitments, which are needed to secure financing. The global supply glut had stoked concern that buyers would seek shorter pacts: Most of the LNG contracts signed in 2017 were for two to five years, data from Poten & Partners Inc. show.
    “We still need long-term contracts to launch projects,” Mike Sabel, co-chief executive officer and founder of Venture Global LNG, said at the Gastech conference in Barcelona Tuesday. “It is not going to change in the foreseeable future.”


    Though there has been speculation that the “long-term contract is just dead and it needs to be three to five to 10 years,” deals of more than 15 years’ duration are sticking around, Greg Vesey, chief executive officer of developer Liquefied Natural Gas Ltd., said in an interview at Gastech.


    Some buyers have a “strategic objective to take 20-year contracts to ensure that the facility gets built,” said Vesey, whose company plans to build the Magnolia LNG export terminal in Louisiana.


    Cheniere shares fell 1.3 percent to $64.77 in New York on Monday amid a broader market decline.
    That U.S. deals are getting done is a testament to how quickly the country is rising in the ranks as a global gas supplier. Since early 2018, a second wave of projects set to bring more than 10 million tons a year of the nation’s LNG to market under sales and purchase agreements has reached the starting blocks, according to energy consultants Wood Mackenzie Ltd.
    Last edited by mmartin: 21/09/18
 
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